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Protected Retirement Plan

Our plan offers you flexible access to your money.

overview

Buying a fixed term annuity with us could give you:

Protected Retirement Plan options

You've got options with our Protected Retirement Plan

If you like the idea of receiving a guaranteed income but don’t want to commit to a lifetime decision, our fixed term annuity offers you the flexibility to choose the level of income you take, the level of fund available at the end of the term & the option to change your mind. You are in control of your plan & the benefits you want to receive.

Choice of income and term

If you choose flexi-access drawdown you can take whatever regular income you would like, as long as it doesn't empty your plan before the maturity date. If you transfer in and continue with a capped drawdown arrangement, Government Actuary's Department (GAD) limits may restrict your income. If this happens, we'll pay the difference when the plan ends.

Guaranteed income

If you choose to invest your pension fund to provide a secure income, this will guarantee a level of income for a fixed term which can be used for efficient tax planning. The guaranteed income you receive will depend on:

  • the size of the pension fund you invest
  • the plan term
  • whether you choose your income to stay the same or increase each year by up to 8.5%
  • how often you choose you income to be paid

If you die during the chosen term, your plan will end and no further income or lump sum will be paid unless you add death benefits for income and guaranteed maturity value protection when buying our fixed term annuity. You can combine a guaranteed income with a guaranteed lump sum to give you more security.

Guaranteed lump sum

You can invest your pension fund over a fixed term. We guarantee the amount we’ll pay at the end of the term, so you'll know exactly what you’ll get back regardless of market conditions. The guaranteed lump sum value offered will depend on:

  • the size of your invested pension fund
  • the plan term
  • how much income you choose
  • any death benefits you include
  • our views about investment markets

At the end of your plan term, we'll pay the guaranteed maturity value and you can use this to buy another fixed term annuity, or explore your other retirement options like a lifetime annuity, transferring your pension to a drawdown or taking some or all of the value as a taxable lump sum.
You can combine a guaranteed lump sum with a guaranteed income to give you more security.

Death benefits

If you die during the chosen term, your plan will end and no further income or lump sum will be paid unless you add death benefits for income and/or guaranteed maturity value protection when buying a fixed term annuity.

You can choose the level of benefits that we'll pay if you pass away before the end of the plan. To help you decide what benefits are right for you, read more about our optional death benefits.

Read more on death benefits

Blended solution

The rules around pensions changed radically in April 2015 and the range of options available to people approaching or in retirement is now broader, with greater freedom over how and when to use your pension savings.

Our fixed term annuity is available on its own or as part of a blended solution, which allows you to combine multiple pension products into a single plan that is tailored to meet your retirement needs. The blended solution is becoming an increasingly popular as a way to achieve the perfect balance of security and flexibility. This solution enables you to secure a guaranteed income or lump sum for a fixed term with part of your fund, and invest the rest for growth.

Conversion feature

Our conversion feature gives you the flexibility to change your mind. You can end your plan early and convert to any other retirement product or take it as taxable cash. You don't have to wait until the plan ends if you don't want too, you can do it at any time.

This feature is automatically included, so there's no extra charge and no need to opt in. The value may be significantly less than the guaranteed maturity value, or even the original investment, if you use the conversion feature in the early years or if investment conditions worsen.

product features

Take a look at some of the features of our Protected Retirement Plan

  • The minimum investment is £10,000 (after any tax-free cash has been taken).
  • To take out a fixed term annuity you must be aged 55 or over. Your beneficiary needs to be at least aged 40 when the plan starts if a beneficiary's income is included. The terms can be up to 25 years & a minimum term will apply.
  • You can choose to take a level income, an increasing income (up to 8.5% a year) or no income at all. If you choose a level income, or an income that increases each year less than inflation, your income may not keep up with the rising prices.
  • You can choose to receive your income monthly, quarterly, half-yearly or yearly. The first income payment can be paid either as soon as the plan starts (known as in advance) or at the end of the payment period (known as in arrears).

Need some more information? No worries, check out some things to consider

  • You can get a secure, regular income set at an appropriate level for your personal circumstances.
  • You can choose to receive your income monthly, quarterly, half-yearly or yearly. The first income payment can be paid either as soon as the plan starts (known as in advance) or at the end of the payment period (known as in arrears).
  • Protected Retirement Plan can give you the time to make those really important retirement decisions before committing to a more permanent solution.
  • Can provide a guaranteed amount at the end of the term.
  • The maximum age you can be when your Protected Retirement Plan matures is 90.
  • The minimum investment is £10,000 (after any tax-free cash has been taken).
  • You can take out the product from the age of 55 (or at least 40 for early ill-health retirement or a protected retirement age). Your beneficiary needs to be at least 40 when the plan starts if a beneficiary's income is included. The term can be up to 25 years & a minimum term will apply.
  • You can choose to take a level income, an increasing income (up to 8.5% a year) or no income at all. If you choose a level income, or an income that increases each year less than inflation, your income may not keep up with the rising prices.
  • If you cash in your fixed term annuity before the end of the term you may get back significantly less than the guaranteed maturity value, or even the amount you invested.
  • If you take a higher level of income now, it will reduce the amount available as a guaranteed lump sum at the end of the term.
  • We only accept funds from registered pension schemes - you can invest part or your entire pension fund in a plan.
  • In certain circumstances where the type of plan you transfer from has restrictions we may need to reduce your income during the term, but don’t worry, you will still receive this at the end of the term.
  • How much tax you pay depends on your personal circumstances.
  • By taking an income throughout the term of your plan, the guaranteed maturity value may not provide the income you need after this plan has ended.
  • When the plan ends, lifetime annuity rates could have worsened,  changes in legislation or tax rules could be disadvantageous and better investment returns could be available elsewhere.
Any references we make to taxation are based on our understanding of current legislation and HM Revenue and Customs practice, which can change. If the government changes the tax treatment of this plan, the income paid to you may fall.

Useful Documents

You should read the following documents on our Protected Retirement Plan before applying

The information in these documents shouldn't be considered as advice to take out the plan. If you're unsure, you should speak to a financial adviser.

Financial advice

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